VOOG vs. IWO: Is S&P 500 Stability or Small-Cap Growth Potential the Better Buy Right Now?

2 hours ago 3

Katie Brockman, The Motley Fool

Sun, January 25, 2026 astatine 3:21 PM CST 4 min read

IWO charges a notably higher disbursal ratio than VOOG, but some connection astir the aforesaid dividend yield.
VOOG has delivered stronger five-year maturation with little terrible drawdowns, portion IWO is much volatile and small-cap focused.
IWO spreads hazard crossed implicit 1,000 holdings, tilting toward healthcare and industrials, whereas VOOG is concentrated successful large-cap tech.
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The Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) and the iShares Russell 2000 Growth ETF (NYSEMKT:IWO) some people U.S. maturation stocks, but they bash truthful done precise antithetic lenses.

VOOG tracks the large-cap S&P 500 Growth Index, emphasizing established giants, portion IWO focuses connected smaller, fast-growing companies successful the Russell 2000 Growth Index.

This examination highlights wherever each ETF stands connected fees, performance, and risk, helping investors measurement which attack whitethorn entreaty depending connected their goals.

Metric

VOOG

IWO

Issuer	Vanguard	iShares
Expense ratio	0.07%	0.24%
1-yr instrumentality (as of Jan. 25, 2026)	16.16%	15.31%
Dividend yield	0.49%	0.56%
Beta (5Y monthly)	1.08	1.45
AUM	$22 billion	$13 billion

Beta measures terms volatility comparative to the S&P 500. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

Both funds connection akin dividend yields, making them astir equivalent successful presumption of income potential. However, VOOG is notably much affordable connected fees, giving it an borderline for cost-conscious investors.

Metric

VOOG

IWO

Max drawdown (5 y)	-32.74%	-42.02%
Growth of $1,000 implicit 5 years	$1,880	$1,097

IWO tracks U.S. small-cap growth, covering 1,098 stocks with a tilt toward healthcare (making up 26% of the portfolio), exertion (23%), and industrials (20%).

Its largest positions — Bloom Energy, Credo Technology Group, and Kratos Defense & Security Solutions — each marque up little than 2% of assets, reflecting a broad, diversified approach.

VOOG, by contrast, is concentrated successful large-cap U.S. maturation stocks. Technology dominates the portfolio, making up adjacent to 50% of assets, followed by connection services and fiscal services. The fund’s apical holdings see Nvidia, Microsoft, and Apple, and they collectively relationship for implicit 30% of assets.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.

Growth ETFs travel successful each shapes and sizes, and antithetic types tin entreaty to antithetic investors.

VOOG is focused not conscionable connected large-cap stocks, but specifically, companies successful the S&P 500. Larger companies thin to beryllium much unchangeable than their smaller counterparts, making them much apt to successfully upwind periods of marketplace volatility.